autarky


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autarky

1. (esp of a political unit) a system or policy of economic self-sufficiency aimed at removing the need for imports
2. an economically self-sufficient country

autarky

or

autarchy

the practice or policy of economic self-sufficiency

Autarky

 

self-sufficiency, self-satisfaction; in the economic sense, the creation of a closed, self-sufficient economy in a separate capitalist country, leading to a break in traditional international economic ties.

In a pure form, autarky existed only in precapitalistic formations in a natural economy. Autarky as a policy is in conflict with the demands of the international division of labor. Under imperialism, when all countries are closely connected by a system of international economic relations, there are only tendencies toward autarky, arising as a result of the intensification of the contradictions of capitalism. These tendencies were most powerful during the 1930’s when, as a result of the world economic crisis of 1929–33, a break occurred in the previously existing foreign trade and other economic relationships, and countries conducted a policy of “ruining their neighbor.” In the most aggressive imperialistic countries autarky began to serve the aims of creating a relatively closed economy capable of producing all that was necessary for conducting a war under the conditions of economic blockade. Autarky was the official economic theory of Fascism. After World War II autarkic tendencies—for instance, high obstructive duties—are to some degree inherent in several closed trade economic blocs such as the European Economic Association and the European Association for Free Trade.

V. V. MOTYLEV

References in periodicals archive ?
Free trade and autarky are identified as the polar cases.
financial integration and the trade developments of EMU vis-a-vis non-EMU countries as clearly as possible, the optimization problems of (younger) households and firms as well as the market clearing conditions are now described separately for the cases of financial autarky and intra-EMU, Asian and U.S.
By standard arguments (e.g., Stokey, Lucas, and Prescott, 1989), our assumptions on u ensure that the autarky value function [OMEGA](a) is continuously differentiable, strictly increasing, and strictly concave for all a [member of] A.
Inspired by Samuelson's multiplier-accelerator, an empirical analysis was conducted to elucidate a mechanism to switch from an autarky cycle and to an investment-inducing virtuous cycle.
teams would then accumulate (14 blue, 14 red) instead of the autarky outcome (12 blue, 12 red), while Japan teams would accumulate (six blue, six red) instead of (four blue, four red).
Figure 1 shows the equilibrium under autarky under the assumption that both loci are negative.
But I am confident that the situation would be worse had India not switched its economic gears from autarky to policies that actively encouraged greater participation in the global economy.
Thus, a nation's welfare per capita in autarky will increase (decrease), the lower (greater) the flxed, marginal and transport costs, and the greater (lower) the population density.
In this scenario, where transportation costs are high and may lead to autarky, calls for interventionist government policies by the developed country occur (e.g.
Economists usually describe the gains from international trade by comparing welfare at a free-trade equilibrium with welfare at an autarky equilibrium.
Schlesinger: The mercantilist model is a great improvement on what they had under Mao Tse-tung--sheer autarky. It's hoped that as China moves into mercantilism they will gradually become part of the integrated world economy.
Steil's article, entitled "The Curse of Currency Autarky," claims that "financial crises will continue to emerge so long as governments continue to inject autarkic national currencies into internationally integrated national economies."